August 2026 Steel Market Overview

Global steel and raw material markets continued to show diverging regional trends throughout August. European steel prices maintained an upward trajectory, while Asian markets remained more cautious amid uneven demand conditions. Seasonal summer slowdown limited market activity across several regions, while tighter import availability in Europe and expectations of stronger post-summer demand provided support to regional steel prices. At the same time, iron ore prices continued to soften, while scrap markets showed more mixed movements.

Global HRC Price Trends: European Prices Continue to Rise

Hot Rolled Coil (HRC) prices continued to diverge across key markets during August.

HRC Ex-Works Ruhr prices increased to around 717–720 EUR/metric ton, continuing the upward movement recorded in July. European market activity remained relatively subdued during the summer holiday period, but tighter import availability following the implementation of new EU import measures continued to support domestic prices. Market participants increasingly focused on September business, with expectations for further price increases as buyers return to the market.

In contrast, HRC FOB Black Sea prices declined slightly to around 518–520 USD/metric ton, while HRC FOB China prices increased modestly to approximately 486–489 USD/metric ton. Chinese steel demand remained uneven, with weakness in the construction sector continuing to weigh on overall market sentiment despite stronger activity in some manufacturing and export-oriented sectors.

Rebar Market Analysis: Regional Trends Remain Mixed

Rebar prices showed mixed movements across the key markets monitored during August.

  • Rebar FOB Turkey: Averaged within the 579–582 USD/metric ton range, edging higher from July. The market continued to be influenced by raw material costs and export demand, while lower scrap prices compared with earlier months provided some cost-side support for producers.
  • Rebar FOB China: Traded around 484–487 USD/metric ton, declining from July as domestic demand remained cautious. China’s construction sector continued to face weak conditions, while elevated inventories and subdued property activity limited upward price momentum.

The contrasting movements between Turkish and Chinese rebar markets highlight the continued regional divergence in steel demand and pricing conditions.

Steel Scrap Outlook: Mixed Movements Across Key Markets

Ferrous scrap prices showed a more stable trend in August compared with the significant declines recorded during July.

Premium HMS 80:20 CFR Turkey prices averaged around 374–377 USD/metric ton, showing a modest increase from July. HMS FOB Rotterdam prices also moved higher, averaging approximately 333–336 USD/metric ton.

The stabilization of scrap prices provided a relatively balanced cost environment for Electric Arc Furnace (EAF) producers. However, market activity remained affected by seasonal demand patterns and cautious purchasing decisions across several regions.

Iron Ore Benchmarks: Prices Continue to Ease

Iron ore prices moved lower during August, with the Iron Ore CFR North China (62% Fe) benchmark averaging around 95–97 USD/dry metric ton. Higher-grade 65% Fe CFR North China material traded within the 111–113 USD/dry metric ton range, while 58% Fe CFR North China averaged around 82–84 USD/dry metric ton.

The softer price environment reflected continued uncertainty surrounding Chinese steel demand. China’s crude steel production declined in July, while the construction sector remained under pressure from weak property market conditions and elevated inventories. At the same time, iron ore imports remained relatively strong, limiting the extent of the price decline.

Market Forecast: Key Drivers Heading into September 2026

Outlook: Global steel markets are expected to remain regionally differentiated as September approaches. In Europe, tighter import availability, new trade measures and the expected return of buyers following the summer slowdown may provide further support for domestic steel prices. Market participants are already anticipating increased activity and higher HRC prices in September.

Meanwhile, Asian markets are likely to remain sensitive to developments in Chinese steel demand, production levels and inventory trends. Raw material prices, particularly iron ore and scrap, will continue to influence steelmaking costs, while international trade policies and regional supply-demand balances remain important factors for global steel markets.

Source: Based on publicly available international market indices, global shipping logistics data, and heavy industry trade reporting.